How to Register a Limited Liability Company in Botswana

How to register a limited liability company in Botswana

Botswana is located in the Southern part of the African continent. It is officially known as the Republic of Botswana and is bordered by South Africa to the South and Southeast, Namibia in the West and North and Zimbabwe in the Northeast. Let discuss how to register a limited liability company in Botswana as foreigner?

It has a relatively small population of 2.35 million people (2017 figures). The country’s economy is dominated by mining, cattle and tourism

The country has quite a good rating on the ease of doing business report by the World Bank. It was reported at 71 out of 190 countries in 2017.

Types of companies

There are various types of company that can be incorporated in the country.

Sole proprietor You can incorporate a sole proprietorship company in Botswana. This type of company is normally owned and managed by a single person.
Partnership There are basically 2 types of partnerships which are the general partnership and the limited partnership. For both partnership companies, there must be a minimum of 2 shareholders.
How to register a limited liability company in Botswana and public limited (LLC by shares) ? For a private company, there must be at least 1 resident director while for a public company there must be at least 2 resident directors. The registered office of these types of companies must be in Botswana. Auditors are also required for these companies and they must be certified public accountants and practicing in Botswana.
Close company For this type of company there are no directors or shareholders. There are only members who also have limited liability.
Company limited by guarantee Members for this type of company must agree to pay a certain amount in the event the company goes bust. This type of company is mainly used for non-profit making companies.
Branch Office A branch office may be 100% foreign owned. This type of company is allowed to conduct business in the country which is related to the parent company. However there must be at least 1 director and 1 shareholder.

How to register a company in Botswana

Overall the business climate in Botswana is relatively good as evidenced by the quite high ranking in the Ease of Doing Business report by the World Bank. The Botswana government also tries to attract more foreign investments with the low tax rate.

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